McDonald’s sues ex-CEO Steve Easterbrook over a $57 million severance

• The fast-food giant alleges Easterbrook lied about having consensual relationships with numerous employees, and that the former CEO ruined evidence.
• McDonald’s fired Easterbrook in November 2019 for having a consensual relationship with an employee.
• Executive compensation tracking company Equilar approximates that Easterbrook’s severance bundle is now worth around $573 million.

  Previous McDonald’s CEO Steve Easterbrook received a multi-million dollar severance offer after being fired from the fast-food giant on November 1, 2019.

  On Monday, McDonald’s submitted a grievance declaring that Easterbrook sent nudes from his work email, and then attempted to erase the images prior to turning his phone over to investigators.

  In the company’s problem to Delaware’s Court of Chancery, McDonald’s lawyers composed that McDonald’s first ended up being aware of allegations that Easterbrook was engaging “in an inappropriate personal relationship with a McDonald’s employee” in October2019

  The problem declares that Easterbrook told detectives that the relationship was non-sexual and “the just one of an intimate nature he had ever had with a McDonald’s worker.” The board then pertained to an agreement with its CEO that he would be ended “without cause,” so that he would earn “considerable severance benefits.”

  ” Had Easterbrook been honest with McDonald’s investigators and not concealed evidence, McDonald’s would have known that it had legal cause to terminate him in 2019 and would not have agreed that his termination was ‘without cause,’ McDonald’s’ lawyers wrote.

  Now that McDonald’s is taking legal action against over the arrangement, Yu stated that Easterbrook could stand to lose more due to the stock-heavy nature of his severance.

  ” Some things have actually altered however for one of the most part he still stands to lose a good piece of his severance due to the fact that a lot of it was based on equity,” Yu informed Company Insider.

  McDonald’s has not specified the amount it is asking for in damages. As an alternative route, McDonald’s asked the court order “Easterbrook to return all cash and stock awards granted pursuant” his severance agreement.

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